suggesting cash flow is inadequate and balance sheet too debt laden is the one inadequate. Equity to debt ratio is about 2:1 an upper quartile strong balance sheet. As for cash flow/ dividend, PWE is about average. My background: credit analyst/mba accounting. My recommendation is intermediate, long term.
MBA U of Chicago. Agreed balance sheet is pretty strong. If dividend was cut out altogether this stock would be at 18 dollars. With gas above 4 all year and oil above 90, with 5 % improvement in netbacks this is a slam dunkeroo.Easily the best candidate for take over . Light oil is gold, heavy bitumen is #$%$ that raises political flags every where.
Is a dividend cut priced in at this level already? I know most of these former Canroys drop like a rock when the payout is reduced, most recent example is ERF, a big drop then somewhat of a bounce and stabilization in the 7-8% dividend range. It seems like PWE's price already reflects a 25% cut, but not 40%.